Shalimar Paints Ltd (SHALPAINTS)

Consumer Durables · Paints/Varnish · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹79.5 ↑ 6.1% (1Y)

🎯 Key Takeaways

Shalimar Paints is in a strategic restructuring and capital-raising phase, marked by significant share dilution through proposed preferential issues and convertible instruments. Despite operating in a mature industry, the company is pursuing aggressive growth via acquisition of a stake in Hella Infra Market Limited and expanding its capital structure with new debt and equity instruments.
Revenue declined 11.7% QoQ to ₹138 in Q1FY27.
⚠️ Severe profitability challenges: The company has reported consecutive quarterly losses and negative margins, with no clear recovery trajectory.

Market Cap

₹666

P/B Ratio

2.65

ROE

-27.6%

ROCE

-11.2%

Debt/Equity

0.63

Promoter

75.0%

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📖 The Story

Shalimar Paints is in a strategic restructuring and capital-raising phase, marked by significant share dilution through proposed preferential issues and convertible instruments. Despite operating in a mature industry, the company is pursuing aggressive growth via acquisition of a stake in Hella Infra Market Limited and expanding its capital structure with new debt and equity instruments. However, persistent losses, negative ROE and ROCE, and declining margins indicate operational challenges. The company is transitioning from a traditional paint manufacturer to a more diversified entity with financial engineering at its core.

📰 What's Happening

The most recent developments center on a corrected capital-raising proposal involving up to ₹6,895.22 crores through the issuance of compulsorily convertible preference shares (CCPS) at ₹85 per share, aimed at funding working capital and general corporate purposes. This follows an EGM scheduled for September 11, 2026, to approve the issuance and a potential ₹1,000 crore Qualified Institutional Placement (QIP). Proceeds from the CCPS issue are to be held in non-eroding instruments and converted within 18 months. The board has also increased authorized share capital to ₹600 crores and introduced a new tranche of non-cumulative, non-participating, compulsorily convertible preference shares. These moves signal a strategic shift toward leveraging capital markets for growth, albeit with significant dilution risks.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	155	134	131	156	138
Operating Profit	-12	-11	-16	-3	-17
OPM %	-7.9%	-8.2%	-12.0%	-2.0%	-12.5%
Net Profit	-17	-14	-27	-7	-21
EPS	₹-7.88	₹-1.69	₹-3.18	₹-0.88	₹-2.54

Quarterly financial trends show declining revenue and persistent operating losses, with operating margins consistently negative over the past six quarters. Revenue peaked at ₹156 crore in March 2026 but has since dipped, while net losses have widened in absolute terms despite some margin stabilization. The company reported a net loss of ₹63.34 crore in FY2025-26 on revenue of ₹569.03 crore, reflecting ongoing pressure on profitability. These financial trends align with management's disclosures of strategic investments and restructuring, but do not yet indicate a clear path to operational breakeven or margin improvement.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance or timelines beyond operational and capital structure milestones. While the company has outlined plans for CCPS conversion within 18 months and QIP completion within 365 days, there is no stated roadmap for returning to profitability or improving margins. The focus remains on capital restructuring and strategic investments rather than near-term financial recovery. Investors should note the absence of performance targets or recovery timelines in management commentary.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	17	17	17	17
Reserves	330	298	268	234
Borrowings	162	164	190	157
Total Liabilities	689	702	688	641
Fixed Assets	266	299	274	297
Investments	0	0	0	3
Total Assets	689	702	688	641

The balance sheet shows a stable equity base of approximately ₹17 crores but declining reserves, suggesting limited retained earnings to absorb losses. Borrowings have increased slightly, from ₹164 crores to ₹190 crores, indicating modest leverage growth. Total assets have declined marginally, from ₹702 crores to ₹641 crores, reflecting asset base contraction. The company appears to be managing liquidity carefully, with recent operating cash flows turning positive (₹23 crores in March 2026), but this is offset by significant financing outflows. Capital allocation is currently focused on funding restructuring rather than investment or shareholder returns.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025	Mar 2026
Operating	-59	+23
Investing	-14	-1
Financing	+27	-25
Net Cash Flow	-46	-2

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	75.0%	75.0%	75.0%	75.0%
FII	0.0%	0.0%	0.1%	0.0%
DII	0.0%	0.0%	0.0%	0.0%
Public	21.6%	21.2%	20.9%	21.0%
# Shareholders	32,659	32,408	31,826	31,768

Promoter holding remains stable at 74.96% over the past year, indicating no immediate dilution from promoter sales. However, foreign institutional (FII) and domestic institutional (DII) holdings are minimal and volatile, with FII increasing slightly from 0.01% to 0.08% while public shareholding has gradually declined. The low institutional interest and high retail investor base (31,768 shareholders) suggest limited market confidence. No significant changes in shareholder activism or activist involvement are evident from the filings.

⚖️ Peer Comparison — Paints/Varnish

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
ASIANPAINT	2.46 L Cr	51.6	28.7%	22.6%	0.11
BERGEPAINT	57,268	47.0	23.6%	17.6%	0.02
KANSAINER	15,730	24.1	12.5%	8.8%	0.01
JSWDULUX	14,312	7.3	96.8%	80.0%	0.00
INDIGOPNTS	5,588	34.7	21.5%	15.8%	0.01
SIRCA	2,452	36.2	18.6%	14.1%	0.07
SHALPAINTS	666	—	-11.2%	-27.6%	0.63
543902	61	—	—	—	0.26
MCON	—	—	—	—	0.59

🔗 Peer Stock Analyses

ASIANPAINT BERGEPAINT KANSAINER JSWDULUX INDIGOPNTS

⚠️ Risk Factors

1. Severe profitability challenges: The company has reported consecutive quarterly losses and negative margins, with no clear recovery trajectory. 2. Capital dilution risk: The proposed issuance of CCPS and QIP could significantly dilute existing shareholders' equity. 3. Execution risk on strategic bets: The acquisition of a stake in Hella Infra Market Limited and capital market maneuvers carry execution and valuation risks. 4. Market liquidity concerns: Low institutional interest and high retail volatility may impair price stability during capital restructuring events.

📋 Recent Filings

🧠 Analyst's Read

Shalimar Paints is undergoing a high-risk transformation involving substantial capital raises and strategic diversification, but its path to profitability remains uncertain. Investors should monitor the outcome of the EGM and the pace of CCPS conversion, as well as any updates on operational performance post-restructuring. The company's future hinges on whether its financial engineering can translate into sustainable margin improvement and market share gains in a competitive sector.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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